Citigroup Bets Big on Bitcoin, Raises Strategy Inc. Price Target to $240

Citigroup has significantly raised its price target for Strategy Inc. to $240, reversing a previous cut to $136. The upgrade follows a new 12-month Bitcoin forecast of $113,000, up from $82,000. This increase in the price target implies roughly 50% upside if the underlying assumptions hold.

The decision to raise the price target comes after Citigroup lifted its 12-month Bitcoin forecast and incorporated assumptions about the cryptocurrency's price path and the multiple investors assigned to Strategy's net asset value. The bank attributes roughly 34% of the modeled upside in Strategy shares to BTC price appreciation and about 16% to an expansion in the multiple of net asset value.

Strategy has continued to add Bitcoin through its at-the-market equity program and to manage a multi-billion-dollar reserve. The company's recent filings show that it purchased 1,665 BTC between September 21 and September 27 at an average price of $85,681.